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Unit 5 Services Marketing SERVICE STRATEGIES Contents 5.1 STRATEGIES FOR HEALTH INDUSTRY ................................................................................................ 2 5.1.a Some examples related to health industry ................................................................................ 2 5.1.b Strategies for Bridging Marketing and Technology ................................................................... 4 5.2 MARKETING STRATEGIES OF HOSPITALITY ....................................................................................... 5 5.2.a Trends affecting the hospitality industry include the following: ............................................... 6 5.2.b SOME EXAMPLES FOR HOSPITALITY INDUSTRY: ........................................................................ 7 5.2.c QUALITY MANAGEMENT IN HOSPITALITY INDUSTRY ................................................................ 8 5.2.D HOTELS REORIENT MARKETING STRATEGY TO MAXIMISE BUSINESS ...................................... 8 5.2.e Hotel Sales & Marketing Services ............................................................................................ 15 5.3 MARKETING STRATEGY IN TOURISM INDUSTRY ............................................................................. 16 5.3.a Some 15 marketing strategies for tourism industry: ............................................................... 17 5.4 FINANCIAL SERVICES MARKETING – TECHNIQUES AND STRATEGIES ............................................. 17 5.5 MARKETING PLAN FOR A LOGISTIC BUSINESS ................................................................................ 23 5.5.a Sales & Marketing Strategy ...................................................................................................... 24 5.6 EDUCATIONAL MARKETING: ........................................................................................................... 27 5.6.a Key Considerations for Educational Marketing: ...................................................................... 28 5.6.b Five Market Trends Suggest Rethinking Educational Sales Strategies Now ............................ 28 5.7 STRATEGIES FOR ENTERTAINMENT INDUSTRY ............................................................................... 29 5.7.a Movie Marketing Strategies ..................................................................................................... 29 5.7.b Strategic Marketing in Creative Industries .............................................................................. 30 Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing 5.1 STRATEGIES FOR HEALTH INDUSTRY 5.1.a Some examples related to health industry: Medical practice marketing is now a fairly common concept for many physicians and clinics. It wasn’t always that way, however, and Evanston Hospital in Illinois was one of the first healthcare institutions to create an official marketing position within the company. Now, it’s widely accepted that without a comprehensive healthcare marketing strategy, our practice is unlikely to be as successful in new patient acquisition as it might. If we recognize you need marketing but simply don’t know where to start, here are some essential steps to healthcare marketing that will put us on the right track. Step 1: Identify Your Patient Humans! Unless yours is a veterinary practice, this part goes without saying. Or does it? Many non-marketers get hung up the market research aspect and are unable to clearly identify their prospective patients from the general mass of humanity. Even if you’re a general practitioner offering family medical services and anyone is a potential patient, the defining factor is your budget. We simply don’t want to be spending money marketing to non-profitable patients, so careful market research and segmentation is important for successfully reaching a specific niche with your healthcare marketing strategy. Step 2: Choose Your Methods of Access Once you’ve determined who your target audience is and divided it into segments based on differentiators, you need to figure out the best method of reaching each group. Methods include: Having a website: However, just because you have one doesn’t mean you’re reaching the right people. Optimizing for search: The majority of prospective patients use online search to find medical practices in their area, so your website needs to be optimized for search engine indexing. Regular updates: Do you have a content marketing strategy that keeps your website fresh and helps you attract potential patients? Social media: Are your various profiles consistently engaging with followers and bringing you new leads? Email marketing: Do you regularly send out news and information to existing patients? Direct mail: Have you tried sending out a direct mail campaign to let local residents know about your services? Print advertising: Even if you can’t afford colour ads in mainstream publications, your local newspaper is likely to have a classified section that a percentage of residents use, so if they are part of your target market, you should be using the option. Step 3: Determine Your Value Proposition So you know who you want to reach with your healthcare marketing strategy and how you plan to do so. But what are you going to tell them when you do? It’s not enough to list your services, you have to give them a reason to want to use you. Most of the residents in your area are already using a medical practice, so they need a good reason to change. And don’t worry about whether it’s ethical or not – competition is good for everyone. It keeps the service providers on their toes and benefits the patients. No, we aren’t suggesting that you compare your offering to anyone else’s – just that you present the benefits of using your services in the very best light that you can: Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing What’s your value proposition? What do you offer that differentiates you from other healthcare services? What are the benefits to the patient of using your practice? For example: Being open for longer hours is a service, which gives patients the convenience of coming in when it fits their schedule. Offering onsite laboratory facilities eliminates the need to travel elsewhere for blood tests. All this is part of your value proposition and helps to persuade prospects to try out your practice and services. Following these essential steps will enable you to formulate a workable healthcare marketing strategy that will lead to successful patient acquisition for your practice. Eileen Parzek Marketing and information technology are two of the most important aspects of any business organization. Traditionally, they have been opposing departments with different agendas, budgets and staff. Yet, between the two are the skills and resources that power a successful and profitable enterprise. Consider the strengths and assets of both IT and marketing, and for the moment, banish budget, politics and organizational structure. Now, consider what your marketing department could accomplish if it had the infrastructure and talents of IT. Technologists, consider the impact you could have if you understood the vision, positioning and strategic plans of the marketing department. Potential Impact Look at the potential that emerges: Customer analysis--Capture customer trends and behaviour, and apply the data to marketing strategies. Personalization--Develop online and offline marketing communication directly targeted to individual customers. Customer feedback--Design efficient and effective online surveys to gather feedback from customers. Community building--Develop an enthusiastic community of customers around your products or services. Customer relationship management--Assess and integrate the right tools for your organization and customers. Affiliate marketing--Create a network of Web sites and customers who resell products and services, and recommend to their friends and customers. Communication--Develop and implement previously untapped channels. Permission-based marketing--Build a clean, "opt-in" list of interested customers and prospects who want to hear the company's message. Intranets/extranets--Improved communication and automation of work flow between internal and external stakeholders. There is no question that a wise organization leverages the process and power of IT and the strategic vision of marketing. Clearly, any of these strategies will have an effect on the bottom line. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing Significant Barriers However, significant barriers exist in most organizations, particularly those with an established history and organizational structure. Miscommunication: Marketing and information technology have differing terminology and jargon which leads to an inability to discuss the intentions, needs and common aims of each group. Different perspectives: Marketers and information technologists naturally have a unique frame of reference for what they bring to an organization and where the organization is headed. Marketers are focused on the results of their efforts, while technologists are more focused on the processes required to make it happen. Politics: Depending on the history and age of the company, there frequently is a contentious relationship between marketing and information technology staff. This can range from general distrust to complete compartmentalization. Competition: Closely related to internal politics, many marketing and information technology departments are competing for budgetary and staffing resources. Frequently, "ownership" of a project, and the glory that comes with it, can be a point of conflict. 5.1.b Strategies for Bridging Marketing and Technology What types of things can an organization do to minimize the barriers and harness the power of technology in its marketing? In a competitive business environment, knowledge often is used as a weapon. A company might consider creating educational meetings where employees on each side have the opportunity to educate their co-workers about their terminology, as well as perspectives. Establish an environment where employees are encouraged to ask questions of each other, and are rewarded for efforts that educate outside their department. The added benefit is that the "us versus them" mindset crumbles when an effort is made within the company culture for the marketers and technologists to interact. In some organizations, an individual who acts as a bridge between marketing and technology will facilitate the fusion. Depending on the type and size of the organization, this facilitator may be a single employee who speaks both IT and marketing fluently, a hybrid department led by a marketing technologist or technology marketer, or an outside third party bridging the chasm between both. People have become wary of technology for its own sake. By appointing a neutral person who shares the knowledge and perspectives of both sides, the organization can explore the ways that it can build technology-driven solutions that actually generate new business and make money. It is possible to communicate an objective to both marketing and technology staff in a way that will engage them in supporting each other. Take, for example, the goal to improve Web traffic and increase orders and revenue. Once the common goals are communicated, and the challenges are known, marketing can redevelop the content of the Web site so that it speaks to the audience in clear, action-oriented language. Meanwhile, IT can explore ways to capture the traffic that comes in and organize it in ways that marketing can use. There is a common objective for every employee in an organization--the efficient and profitable growth of the company. With strong leadership and deliberate education, employees can be guided to understand the increased power and effectiveness that come with it. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing 5.2 MARKETING STRATEGIES OF HOSPITALITY India has lots of luxurious as well as business five star hotels which are facing very tuff competitions in today’s world. To face this competition, the hotels are using innovative marketing strategies to improve their revenue and to face Market competition. This Research is an attempt to analyze and evaluate the role of Marketing Strategy of five star hotels in India and its effects on annual revenue. The focus of the report is to analyze Primary and Secondary Data and then to measure how to Improve Hotels sales revenue by redesigning marketing strategy. Basically marketing strategy provides the direction and guidance to achieve marketing objectives of the firm. The analysis of marketing strategy can identify major competitors such identification of major competitors would enable the firm to offer its appropriately designed marketing mix in order to attained the objectives of the firm. Marketing strategy also has functions of market segmentation. The marketing strategies are helps to identify the market segmentations a well defined marketing strategy clearly describes whom (customers and markets) to serve and whom to exclude. Also what to serve (product and services) and what to serve (which products or services to avoid or stop serving, if such a products or a service does not bring the expected returns to the firm). Marketing strategies helps to minimize risk due to changes in competitor’s strategies, changes in technology, changes in product and services changes in consumers like and dislikes. If risk or contingencies take place, the alternative strategies are put into action to minimize the risks. Marketing Strategies may have various sales promotional strategies to put into action in order to face the challenges of the competitors strategies. Marketing strategy helps a firm to identify the competitive advantage. With the competitive advantage: With the help of marketing strategy a firm can identify the competitive differences on whose strength the firm can compete effectively at the market place. A firm can enjoy competitive differences on whose strength the firm can enjoy competitive differences in several areas such as: Corporate / Brand Image Product Superiority Services Superiority Distribution Network etc. Marketing Strategy also facilitates Organising, Directing, Controlling and Short term planning of the Organising activities. Well defined marketing strategies can generate corporate image of the firm. Dedicated shows, channels, magazines, events, radios and celebrity associations have created an aspirations attribute for wellness offerings. The basic function of marketing, sales, advertising and promotion is to find and retain enough guests to maintain a profitable level of business. In large hotels there is usually a full time marketing and sales division or department regardless of the hospitality firms size, a continuous sales effort is required to fill guestroom, dining rooms, lounges, and meeting space. Sales must never be considered the sole responsibility of single individual, sales is an important part of every employee’s job. In this age of new contribution and investment, modernization, consolidation and merger, automation and growing competitions the name of the game in the hospitality industry is to be “wearing out the carpet” that is, bring in the business. Hospitality marketing strategy include new material on a number of topics, services to customers and clients, increase in market shares, product and services innovation and development, enhancement of corporate image, promotional strategies, relationship marketing, advertisement policy and public relation, customers satisfaction and relationship, food and safety. Today’s Hospitality Trend Successful hospitality management requires innovative and strong marketing strategies to face today’s competitive business market. The study trend is often referred to as environmental scanning in marketing circles and is an integral part of hospitality sales. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing 5.2.a Trends affecting the hospitality industry include the following: Relationship Marketing Partnership marketing and Strategic alliances Technology Guest Preferences Media Planning Globalization Product segmentation and branding Consolidation Environmental awareness Hotel industry Any hotel groups are committed to display through their behaviour and actions the following conduct, which applies to all aspects of Hotels business: The hotel groups promote corporate citizenship through their strategic public-private partnerships. The causes Hotel groups are promote which include reducing malnutrition, promoting indigenous artisans and craftsmen and enhancing employability of identified target groups by sharing their core competencies as a leading hospitality company. The hotel groups have unique scope and opportunity to develop raw potential into a skilled workforce that is immediately employable by various players in the hotel industry. A majority of their community projects are focused around extending their key strengths in food production, kitchen management, housekeeping, customer service and spas to promote economic empowerment of candidates from vulnerable socio-economic backgrounds. The hotel groups are fully committed to the cause of building a sustainable environment by reducing the impact of their daily operations on the environment and improving operational efficiencies, resource conservation, reuse and recycling of key resources. Normally hotel group’s use the highest ethical standards - intellectual, financial and moral and reflects the highest levels of courtesy and consideration for others. The hotel group are committed to meeting and exceeding the expectations of their guests through there unremitting dedication to every aspect of service. Hospitality basically puts the customers first, the company second and the self last. Also the hotels groups are built to maintain teamwork, with mutual trust as the basis of all working relationship. The hospitality industries main aims at leadership in the hospitality industry by understanding its guests, and designing and delivering products and services which enable it to exceed their expectations and always demonstrate care for customers through anticipation of their needs, attention to detail, distinctive excellence, warmth and concern. Every organisation which is related to hotel industry they are more multinational workforce which has been exposed to different cultures, problems and situations and can use its experiences to enrich the local employees whether in India or overseas. Basically hotel, responsive organizations encouraging decision making at each level and which accept change an organisation which is conscious of its role in the community, supporting social needs and ensuring employment from within the local community. In today’s competitive hospitality market it is especially important for properties to increase their market share and profit. No business can afford to rest on its laurels, yet many hotels and restaurant owners fail to recognize the benefit of having a good marketing strategy plan. Having a great idea is not enough, sales advertising and promotional and public relation strategies must be formalized in to a marketing strategy plan but that can be communicated throughout the organization. Marketing Strategies are necessary if a property hopes to effectively compete in today’s market place. Marketing is the foundation upon which sales is built. Marketing seeks out demand, identifies the products and services that will satisfy demand and then employs strategic sales and advertising techniques to reach customers. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing If you try to sell without first utilizing marketing, we could easily sell to the wrong markets. Without well define marketing strategy plan that is based on though research sales affords may be waste. Since the marketing strategy plan is based on through research sales efforts may be wasted. Since the marketing strategy plan is a guide for the two primary means of selling hospitality properties, direct sales and advertising, it is necessary to understand the marketing plans role in sales before delving into sales and advertising methods. Forces managers to think ahead and make better use of property resources Services marketing like Quality, price and speed will be future mantras for survival of companies. Considering the problems prevalent in hotel industry, each stakeholder needs to have clear focus on issues corresponding to their area of operation. Focus and media facilitator are undertake regular and appropriate communication with the users. Focus on building a business model which can be sustained from a financial point of view. Focus on providing support to enhance quality of the institutes and human resources being trained by several Proliferations of media (print, television, event and radio) have contributed in enhancing customer knowledge and increasing awareness about providers and their offerings. Creates an awareness of problems and obstacles Identifies opportunities to increase market share in some market segments and open new opportunities to increase market share in some market segments and open new opportunities in previously ignored area. Sales responsibilities and coordinates and unifies efforts to reach the property’s. Ensure that marketing and sales promotions and advertising are not wasted because of misdirect efforts. Helps evaluate the results of marketing and sales efforts. 5.2.b SOME EXAMPLES FOR HOSPITALITY INDUSTRY: Grand Hyatt Mumbai Hyatt is a global hospitality firm with widely recognized, industry leading brands and a tradition of innovation developed over their more than fifty-year history. Grand Hyatt Mumbai is a city landmark, spread over 10 acres in Mumbai. Grand Hyatt Mumbai is a five star deluxe lifestyle complex that comprises comfortable hotel accommodation with Hyatt's signature. The mission of grand Hyatt Mumbai is to provide authentic hospitality by making a difference in the lives of the people. They focus on this mission in pursuit of their goal of becoming the most preferred brand in each segment that they serve for their associates, guests, and owners. They support their mission and goal by adhering to a set of core values that characterizes their culture. Renaissance Mumbai Hotel & Convention Centre Renaissance Mumbai hotel and Convention centre situated on the banks of Powai Lake, Renaissance Mumbai Hotel & Convention Centre is a five star luxury business hotel in the port city Mumbai. This hotel is spread over in15 acres of luxuriant greenery; it enjoys close proximity to international and domestic airports. Loaded with top-notch facilities, the hotel caters to both business and leisure travellers. They also offer luxurious accommodation in well-appointed rooms, overlooking the panoramic views of the lake. Apart from the largest convention centre in the country, it offers a range of dining choices, excellent leisure activities, modern spa and fitness centre. To put in concise terms, Renaissance Mumbai Hotel and Convention Centre is the perfect place to stay for a business or leisure trip in Mumbai. Novotel Mumbai Juhu Beach Novotel Mumbai Juhu beach Situated in the heart of the financial capital of India. Novotel Mumbai Juhu Beach is a luxury business hotel. This hotel caters to the needs of both corporate visitors and holidaymakers. They offer panoramic vistas of the Arabian Sea from its premises. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing Novotel Mumbai is provides tranquil environment far from the hustle and bustle of the city. The hotel also offers wide-ranging dining option, a state of the art spa. Jw Marriott Hotel JW Marriott Hotel is a famous hotel located in the posh area of Mumbai. It is also close proximity to Mumbai's major business parks. The JW Marriott Hotel offers refined business and leisure amenities, splendidly appointed accommodation and the supreme cuisine enveloped in generous hospitality. This hotel is situated at Juhu, one of the stunning places of city. JW Marriott Hotel is an ideal preference for tourist looking for convenience, opulence and unique personalized services in homely surroundings. Thus, the hotel can be expressed as a perfect place for all types of travellers, travelling either for business purpose or holiday making. The Oberoi Hotel The Oberoi Five star hotel is situated in the city’s prime business and shopping district of Nariman Point. The Oberoi, Mumbai has been completely redesigned to be the ultimate destination for contemporary style and luxury in the Mumbai city. The Oberoi Mumbai provide facilities like excellent dining option, flawless services, supreme opulence and elegantly selected accommodations for an unforgettable stay. Because of this hotel is providing world-class business and recreational facilities therefore it is best suitable for every kind of travellers. The Oberoi hotel has 333 elegantly furnished rooms and suites which are categorized as Executive Suite Room, Luxury Suite Room and Deluxe Suite Room. All the rooms are fully equipped with modern conveniences. 5.2.c QUALITY MANAGEMENT IN HOSPITALITY INDUSTRY Quality is considered as most powerful factor to achieving customer’s satisfaction. Therefore it has very great importance in the hospitality industry. Five star hotels are positioned at the top of the market, selling high quality product and services at high prices. Providing Quality food and services like, 1. Providing a unique quality food and services is core of five star hotels philosophy. 2. They are providing, breathtaking location, best of modern amenities with personalized and warm service delivered with genuine care. 3. The design and architecture of the hotels is inspired by the historical style of the region. And also the luxurious interiors that replete with local arts and crafts to menus that offers an extensive selection of local specialties and classical and folk dance and music performance. 5.2.D HOTELS REORIENT MARKETING STRATEGY TO MAXIMISE BUSINESS Some strategies of hospitality industry from the users and experts point of view: With international and domestic hotel chains making a beeline to dot every metro and tier-II city of India, marketing strategies of hotels also need to be reoriented towards the changing market dynamics to tackle the intense competition. Hoteliers, having understood this, are focusing on retaining the customer part from finding new ones to keep the momentum going. In order to achieve this, hotels are now focused on developing innovative and competitive marketing strategies which seek new ways to acquire retain and increase customers, thereby sustaining and developing in this competitive era. The hotel industry is now adopting new technologies such as customer relationship management tools to push their business. Experts in the industry opine that marketing strategies are determined by various factors such as product diversity, quality, market segment, marketing channel, geographic area covered, branding etc. It also depends on the development of new products; hotel’s positioning in the market, innovation and pricing policy, relationship with customers, partners, suppliers and competitors. Apart from this, Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing the strategies also consider the marketing complexity, stakeholders’ and customers’ expectations, and dynamic external and internal environment. Moreover, the hospitality landscape is evolving quickly as new technology demands that hotels become more social and engaging in their marketing efforts. Hotels are witnessing a significant change in the need and expectations of the consumers due to major shifts in the services and technology landscapes. The emergence of online marketing and social media further complicated the role of marketing professionals. Social media marketing tactics are being used to create visibility, establish community and promote products and services around the world. Hotels have taken advantage of social media marketing trends in developing strategies on Twitter, Facebook, Google+ and more. Social media is also used to get feedback from customers to improve product and services. The customer feedback and opinion are considered very important and are incorporated in strategies, campaign planning and execution. Customer intelligence is even more relevant and significant in the current economic context. The bottom-line is to exceed guest expectation and ensure his loyalty and retention. Evolution role of Marketing Directors Almost all marketing professionals whom T3 contacted for their opinion are unanimous in that the role of Marketing Directors has evolved greatly and moved way beyond the conventional area of advertising and public relations to a much bigger canvas that includes e-commerce, strategising, image management, marketing communication, revenue generation and, of course, sales. “It is about leading the marketing priorities with strategic initiatives to increase sales and distribution in the region and also drive the outbound international sales to the Group’s network of hotels globally. One also needs to manage relationships with key stakeholders, corporate guests and hotel partners,” says Nikhil Dhodapkar, Regional Director-Sales & Marketing, Accor India, and adds that the shift from mass marketing to highly targeted customer outreach and interaction, the emergence of online aggregators and the growing importance of direct distribution channels have all upped what is demanded from Marketing Directors and their teams. Agreeing with him is Ramesh Daryanani, Area Director - Sales & Marketing, South Asia, Marriott International. Daryanani opines that Marketing Directors form an integral part of the team for creating and overseeing the hotel’s annual business and marketing plans, as well as managing the sales team, in addition to maximising hotel revenue among all market segments. “The hospitality industry today demands on-going promotions and advertising, and the Marketing Director’s team is responsible for key decisions such as advertising placements, direct mail campaigns and other activities. In a nut shell, the Marketing Director is a key player in understanding the role that marketing and branding play for customers, while being actively involved in the process of marketing and brand development,” he said. Lokesh Kumar, Vice President - Development & Marketing - India at Movenpick Hotels & Resorts, believes that Marketing Director plays a very important role for hotels because they understand the market. He further says that due to a better understand of market dynamics, a fair number of Marketing Directors are now moving to operation. Rajiv Malhotra, Head of Marketing, South East Asia, and Hotels.com is of a similar opinion. “Companies are becoming more social and interactive in their efforts, which make it imperative for marketing professionals to be more versatile and up-to-date. Also, it is no longer about selling a product, but selling an experience, and hence, the softer aspects become far more important. With an increasing number of consumers making decisions through peer recommendations (user reviews), marketing is much more than creativity, offers and promotions. Marketing is now integrated with the product experience more than ever,” he stated. Siegfried Espitalier Noel, Chief Marketing Officer, Constance Hotels & Resorts, commented that the role has grown increasingly complex with the changing scenario in the industry, driven first Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing by online players, then meta search engines or online aggregators, and finally with the growing importance of direct distribution channels. Shagun Sethi, Director of Sales & Marketing, Fairmont Jaipur, reveals that marketing professionals are constantly challenged to keep pace with evolving business trends and the aggressively expanding communications and distribution channels. Kanchan Rizvi, Director of Sales & Marketing, Radisson Blu Hotel New Delhi Paschim Vihar, feels that the role of Marketing Director has completely revolutionised. “Today, a successful Marketing Director is the one who not only understands the market scenario keeping in mind their competitors, but also has a handle on the latest trends and developments in the industry so that he / she can cash in on any change that influences the business at that very time,” Rizvi said. Aditya Shamsher Malla, Director of Sales & Marketing, Shangri-La’s Eros, New Delhi, stated that Marketing Directors are business leaders working in close coordination with the General Managers and assisting them in fulfilling top line obligations. “Market research, trend analysis, yield management, profitability and long term strategy are an integral part of the role of a Marketing Director in today’s context,” Malla said. Shubham Chandra, Director of Sales & Marketing, Hyatt Regency Chennai, feels that marketing is about creating memorable experiences with humility and innovation so as to become the preferred destination recognised for its genuine hospitality. “Our endeavour has been to create a connection with the people and their psyche so as to be able to understand and cater to their needs better,” Chandra said. Dhodapkar opined that with the increasing ability to analyse data to drive pricing and revenue management, the marketing function now has a much stronger impact on operational performance. Today, most hospitality companies operate under the relentless scrutiny of social media, which has enormous implications for brand management, communications and customer relations. Shifting focus in marketing strategy The marketing strategies of hotels are focused on tapping the potential of all those segments that can generate business for hotels. While some hotels’ thrust is on the domestic market, some see both domestic and overseas markets as equally important. Most of the chains are also tapping the growing might of the Indian outbound sector as well. Rizvi feels that demand always existed in the domestic market, however, it was never explored by the hoteliers all that much. “Today, with the increased supply and pressure on occupancy, the focus has started shifting towards the domestic market which is an ultimate source to pull revenue.” she revealed. Malla opined that the world is focusing on India as a source market, so why should hotels not do the same? “Hotel chains around the world, to woo the highest growing disposable income, have addressed the specific demands of the Indian market. It is imperative that hotels in India recognise the potential of the Indian customers across segments,” he questioned. Hyatt Regency Chennai’s marketing strategy has always been a balance approach towards domestic and international tourism. “We have tailor made packages focusing on the multiple needs of the business and leisure travellers, ” Chandra said. Kumar says that domestic travellers have always been higher than inbound and outbound numbers. “Domestic traffic is quite important and marketing strategies are built up to tap domestic market. One cannot deny international presence, but domestic market contributes the maximum to the occupancy of the hotels. In Bangalore, overseas markets contribute 24-25 per cent in hotel business,” he says citing the distribution statistics on GDSs. Noel feels that hospitality brands such as Constance Hotels & Resorts, which are looking at attracting the Indian tourist to their properties overseas, need to have a very strong strategy in place. “We have been in the Indian market for about a year and have been able to get the key industry influencers talk about us. However, a direct consumer engagement is something that is on our agenda this year. There is a lot of ground work that has to be done for the brand in India and we intend to work at the grass root level and then gradually move ahead,” he says and informs that Constance Hotels will aim and strike partnerships with key travel agents, work closely with Tourism Boards Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing from destinations which have a presence in India, and come out with joint tactical promotions to stay ahead in competition. Accor targets customers across the spectrum depending upon the purpose of travel and accordingly cater to their specific requirements. “Having a portfolio of brands from luxury to budget allows us to tailor the right product and brand to cater to our customers, both for today and tomorrow, and ensure the right product is made available to support our partners and ensure the viability of their projects and investments,” Dhodapkar says and adds that Accor caters to both the business and leisure travellers. The percentage of demand for each of these segments depends on the location of the hotel. Malhotra argues that hotel bookings and packages have seen some growth in the domestic market in the last few years. “However, as more and more standalone travel options such as LCCs, better busses etc. become available to consumers, we see stronger growth in standalone hotel sales. In this regard, we realised that localisation is the key to success in any market,” he states. Fairmont Jaipur’s primary focus is on promoting the property through traditional media internationally and in India. “Using other media such as the web, social, electronic media and radio, we are looking at robust activities to engage the community and welcome them to experience our services. We are also focused on building on our existing position as our strategies to focus on this niche market has been highly rewarding,” Sethi reveals. Do multiple brands from one chain make the task challenging? Kumar says brands that have multitude of offering is actually in an advantageous position. “Corporates have requirements in every price bracket. Having plethora of options, the contracting process for Marketing Director of that particular chain becomes simple. He can offer all his properties to one corporate and does a multi-hotel tie up in single go,” he says. Daryanani states that positioning and building a brand differentiation with the same market does most definitely have its challenges, but the mantra is to position the brand in its true identity. “All our brands have a distinct make up and identity. We ensure that all platforms of communication speak the same language. Brand differentiation is a slow and persistent process. It happens with strategic marketing support that helps create the required distinction within the consumer mind space,” he informs. Noel also believes that and marketing two properties in the same destination can at times become difficult. “However, this is overcome by identifying with our audience, both in the trade fraternity and the end consumer pool, and driving our promotional strategies in a targeted manner. The good side is we have more to offer and a greater reach,” he adds. Sethi, however, does not see any challenge emerging out of the presence of multiple brands in the same city. “We have clear and distinct differential factors between our brands. Our customers are well tuned to what to expect from each of our brands, even if we are in the same city. Targeting the right customer for the right product, based on our positioning and pricing, has always created a distinct demarcation for us, thus also making it easier for our customers to choose the right brand and product of their choice.” Rizvi echoes this opinion. “I don’t think positioning different brand under one chain is challenging, provided the chain has positioned its brand well. There has to be clear definition and positioning of each brand in the market. Today’s customer is well explored and seen the world and understands the difference in star category hotels with benefits attached to the same. The challenge comes when customer is not looking at the brand and is very price sensitive,” she says. According to Dhodapkar, strong distribution in India is a key to a stronger presence and a meaningful market share. “With a significant network of hotels in the country today, the sales network team is located in all key feeder markets driving business to every hotel across the country. The network is built on a strategy that gives each of the key markets its own hub that further enhances and strengthens the sales force, giving the network the muscle it requires,” Dhodapkar says, and adds that the opening of new hotels will give further ammunition to Accor’s sales team, helping them grow remarkably. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing Malla further adds that different hotels of the same chain in the same city are akin to different needs of the same family being addressed from the same menu. Challenges for marketing professionals According to Daryanani, a marketer faces numerous challenges ranging from fast-changing consumer tastes, increased competition, customer satisfaction, promotions and offers and pricing. “These variables lead to new, complex marketing challenges that call for new thought processes and solutions. Being updated with the business environment, keeping track of the competition, understanding the trend and need of the current market, are few of the updates we need to keep in mind while drawing up a marketing plan for any of our brands,” Daryanani says. Rajiv Malhotra stated that one of the biggest challenges faced is adopting the right marketing strategy in order to stay relevant and appealing to consumers in different markets. Another major challenge is engaging with an ever changing consumer. “With the advent of social media and smartphones, what was interesting yesterday is irrelevant today,” he adds. Going a step further, Noel opines that the industry is currently transiting between two worlds - one that is tech savvy and the other that is yet to embrace technology completely. “It is important that we understand the differences between both and balance these worlds. We have been in the Indian market for a year now and have understood the Indian traveller’s needs and demands. We are customising our strategy to meet these needs,” he says. Rizvi states that the marketing profession is very challenging as the pressure of producing is very high with demand not growing up to the level of supply in the market. “One needs to focus on the destination marketing of his product. We need to create a message house for our product which drives the customer to the hotel. One needs to plan the marketing calendar for the hotel focusing on the USP of the property, which can help drive in incremental revenue,” she adds. The major challenges, according to Malla, are competition and product differentiation. “Our marketing strategy focuses on customer segmentation and the brand. This helps position the hotel for long term performance,” he comments. Then, there are challenges that emerge in the development phase that did not involve Marketing Directors in the past. “Now, with the evolving roles of marketing professionals, they are usually seen as a part of the concept team at the very onset of a project,” Noel says. Kumar further added, “Marketing professional, generally, used to join 6-8 months before the launch of the hotel. However, this is changing as hotels now understand the importance of involving marketing professionals since beginning so that promises made to owners are fulfilled.” Dhodapkar shares this sentiment, “In Accor, the marketing team is very involved in development, right from the inception to the more important stage where the brand is introduced.” Marriott also believes in working as a team, “The aesthetics and essence of the brand is kept in mind while planning, strategising and executing. Each brand of Marriott International has a unique set of characteristics that form the foundation for marketing that particular property. From a marketing perspective, we identify these characteristics of each brand, and adopt them in our marketing strategies,” stated Daryanani. Malhotra, however, reveals that marketing professionals have not being involved in product development is a bit of an issue. “I have a background in Product Management which helps me understand my colleagues in product a bit better. However, the advantage I have at Hotels.com is that we share a lot of information and collaborate on several projects including product development. This ensures that all the teams are aligned to a common goal,” said Malhotra. Sethi does not agree that marketing professionals are not involved in the product development phase. “What helps a lot is the fact that, with Fairmont, our hotels derive inspiration from the local culture and aesthetics, in terms of design, décor, and architecture. This gives us enough of a heads up when Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing planning for the positioning and brand development exercises,” says Sethi. Rizvi, however, feels that not involving marketing professionals during product development, makes the job challenging. However, she clarified that this was the traditional approach and way of a marketing professional. “Today, a marketing professional is made well aware of the product development and its benefits before they take the product to the market,” she says. Malla shared that marketing professionals are involved with product development and feedback from the market is ploughed back to the product development team. “The Marketing Director has an influential role in analysing the trends and preferences which thereby decide the final outcome of the product,” he states. Another challenge that Marketing Directors face today is to increase the demand throughout the year, including lean seasons. According to Dhodapkar, frequent and ill-forecasted changes are a challenge, and many a times it is not in your hands. “It is conventional planning and thinking out of the box that will keep a brand afloat during hard times. One needs to make his product more appealing. It is easier said than done, but it’s exciting if the team enjoys challenges, and that is what we strive to do - to have fun while conceptualising anything new and different. If we are able to proactively come up with an effective plan we are sure that we are well planned when the hard times hit us,” he reveals. Daryanani states that one of the key responsibilities of the marketing team is to maximise the hotel’s revenues by developing programmes to increase occupancy and make profitable use of its accommodation, meeting and leisure facilities. “They need to be aware of the factors that influence the hotel industry in terms of competition and trends, and also gain a deep understanding of the needs and attitudes of a hotel’s customers. Keeping in mind the current demand of the business environment, the hotel marketing manager is responsible for coordinating marketing and promotional activities to meet customer needs and achieve set goals for the low seasons,” he opines. Malhotra adds that there is always a demand for travel, and though leisure travel is seasonal, it is only a part of the overall business in India. However, occasionally, to boost demand for a given destination or to take advantage of a special offer, one might be able to negotiate with hotels. Hotels.com offers seasonal and occasion-led promotions, he revealed. Constance Hotels feels that it’s always a big responsibility, and hotels are getting to that stage in India too. “We sometimes also have to market the destination to generate interest in the travellers. Then there are times during low seasons when we come up with attractive offers that will get a consumer to plan his travel,” he says. Rizvi believes that low season sales take the way ahead on marketing to push demand and obtain a fair share from the market. “Though I believe that the hotel industry has changed, and to be successful in the long run one needs to focus on ‘plan marketing activities for the year, one need to be visible in the market through various marketing tools, and, more than that, be on his toes meeting customer one to one to understand their ever changing needs and requirements,” she suggests. Malla thinks that every strategy is complemented with a tactical plan which addresses short and medium term shifts in demand, including political and economic instability. “Tactical plans are well defined and are rolled out in accordance with the market condition,” she opines. Online visibility and social media Marriot’s focus has always been on maximising its online visibility through natural search which drives a sizable number of visitors to its hotel websites along with supporting banner campaigns. “We approach the social media piece as an engagement platform as opposed to a marketing tool. Our hotels are extremely active on Trip Advisor which allows us to make our social media activities scalable. Our hotels subscribe to social media listening platforms, thus helping us with online reputation management, guest satisfaction levels and improving our social media presence,” says Daryanani. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing Dhodapkar opined that the hospitality landscape is evolving quickly as new technology demands that hotels become more social and engaging in their marketing efforts. “Travellers are looking for the best value propositions, and consumer demand is pushing for hotels to make concerted efforts on property upgrades and improvements,” he says and informs that half of the travel industry will be using social media as a way of generating revenue and bookings. “Currently most of the companies use social media as a revenue generating tool and we would definitely see more users over the next five years. Facebook’s posts are already integrated into Bing search and Google+ emerged with native integration into Google search. Hotels can no longer afford to linger over adding social media to their marketing mix and it’s now a necessary element of traffic-driving success,” he adds. Malhotra states that one of the main goals of the social media strategy of Hotels.com is engaging with customers. “Through social media, communication with them on a one-on-one level, which is difficult do in other mediums, becomes easier. Connecting with our consumers in this way creates a bond which is much stronger than traditional media. Our strategy as of now is to listen to our consumers and design incentives for them for sharing their views and suggestions with us. Of course we also try making our social media communication as relevant and interesting as possible for our consumers,” he says. Noel believes that a social media strategy is of utmost importance for all the players right now. “Our approach to social media is aligned with our overall vision of providing authentic hospitality to our guests in all we do, and we do this through engaging posts and competitions on our social media channels. We seek guest feedback and share offers and promotions regularly so that our guests know what we are offering. Also, we heavily engage in SEO and online marketing campaigns to ensure our positioning on the online platform is also as desired and easy for our guests to locate,” Chandra adds. “Over a period of time, we are looking at establishing ourselves on several other platforms that are currently in their infancy stages, but have the potential to grow more within the Indian markets. In addition to posting online videos of our upcoming developments and current activities, we aim to broaden our reach over the coming months to a much larger audience with specific interests,” Sethi said. According to Rizvi, the latest trend in marketing is all about digital space whether it is OTA, brand website or social media. “Going with the trend, our focus has also changed and we ensure that we maintain our picture gallery on our website, and that content is of good quality and always updated with latest happening in the hotel. We have associated with Revinate, which is platform to have all social networking under one umbrella, which updates us with customer feedback on daily basis,” she reveals. Malla feels that the single most important goal of a social media campaign is engagement. “Engaging with different segments of customers across the globe through social media helps in product differentiation, communication and positioning. What works is engagement driven at different levels through different tools but dovetailing into the overall marketing strategy of the hotel,” he says. Talking about the impact of customer intelligence on things like strategy and planning, campaign execution, customer experience and cross-channel effectiveness, Chandra stated that customer intelligence is crucial for any planning because it helps one plan better when aware of the expectations and needs of the target audience. Dhodapkar believes that customer intelligence does offset the plan. However, the key is to adapt quickly and effectively. “Accor has efficiently been able to adapt to the needs of its guests and yet keep its strategy and brand standards,” he said. Daryanani believes that consumers are perpetually connected and this has changed their requirements. “There has been a significant change in the need and expectations of the consumers due to major shifts in the services and technology landscapes. Hence, the customer feedback and opinion Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing are considered very important and are incorporated in strategies, campaign planning and execution,” he shares. Noel says that analysing customer behaviour and experience is of utmost importance, and that is one thing the Group bases most of their strategies on. “When a guest is leaving, we always ask for their feedback. We take our comments on social networking sites and hotel reviewing sites very seriously and are quick to respond too. There is no room for guess work anymore,” he opines. According to Rizvi, increasing competition and supply has put tremendous pressure on hotels to implement any strategy and execution of the same. “Today’s customer is updated with all the offerings in the market and chooses the best available at the lowest price. Our whole strategy and planning towards any program and campaign is based on customer feedback with a focus to produce and sell what the customer wants to buy,” she adds. Hence, to be successful, the marketing strategies need to choose the right segments, develop differential products, devise alternative distribution channels, and use innovative processes that produce high quality products at lower prices. Thus, a better marketing strategy helps hotels reach its objectives. Strategies of hotel sales & marketing: Savvy sales and marketing strategies can make the difference between empty rooms and a solidly booked hotel. Our comprehensive hotel sales and marketing services cover every area of advertising and marketing-from online to in-person tactics. We’ll identify your needs, create a plan for your operations, and then take you through each step of executing that plan. 5.2.e Hotel Sales & Marketing Services Competitive Analysis: Get an in-depth analysis of your local hotel sales competition. Find out where the unique opportunities exist in your market that should be exploited, which hotels are taking your business-and what can you do to beat them at their own game. Market Research: Plan B Hospitality Consulting will research your target market to determine the best hotel marketing strategies to reach new clients and boost sales. Hotel Marketing Plan: We’ll create a hotel marketing plan that will direct all your hotel advertising and outreach efforts. The hotel marketing plan we create will take into account all relevant factors such as budget, competition and your hotel’s target audience. Hotel Sales Promotion: Based on our experience in hotel sales and marketing, we’ll create promotions tailored to your needs across all platforms-from online hotel marketing and hotel marketing on the web to traditional hotel advertising outlets. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing Trade Shows: Hospitality trade shows offer a unique opportunity to network and create valuable new alliances in the hotel industry. Plan B Hospitality Consulting can prepare everything from your employees who will be working the booth to your trade show marketing materials. Employee Training: Increasing sales starts with employees who know how to make sales. Plan B Hospitality Consulting will train your staff to increase sales while respecting the integrity of the hotel brand standards. 5.3 MARKETING STRATEGY IN TOURISM INDUSTRY The Accidental Tourist "For Newfoundland and Labrador, there’s no such thing as an accidental tourist. It takes deliberate planning and determined effort to visit here, compelled by curiosity and the promise of what’s unique and different in our people, culture, lifestyle, and dramatic scenery." Barriers & Opportunities Travel distance, access, and cost continue to be significant barriers for visitors, and a competitive disadvantage for the tourism industry in Newfoundland and Labrador. A short peak season, capacity constraints during peak season, and increasing problems and delays at border crossings and in airports make increasing tourism visitors and revenue even more difficult. Competing with well-known tourism destinations that are well-funded and heavily advertised makes the job even tougher. Despite these barriers, there are opportunities open to Newfoundland and Labrador Tourism. Baby boomers are entering the empty nest stage of the family lifecycle. They have money, time, and keen interest to explore destinations that are off the beaten track, unusual and unspoiled places where few have gone before. Places like Newfoundland and Labrador. Ontario, our largest non-resident market, still remains largely underdeveloped for Newfoundland and Labrador tourism. Our greatest opportunity may lay in the launch of the new Tourism brand positioning and personality for Newfoundland and Labrador – and the creative strategy which we use to express it. Our coastline, rich history, unique culture, people, and natural environment remain our key strengths. Marketing Objectives The marketing objectives for Newfoundland and Labrador Tourism are to increase non-resident visitation and expenditures from our core markets, thereby increasing the tourism industry’s annual contribution to the economy. The strategies and campaigns created to achieve these marketing objectives will also be guided by the desire of government and the Tourism Board to extend the tourism season beyond the core summer season in order to increase the economic benefit and the long-term viability of the industry. Marketing Strategy Newfoundland and Labrador Tourism will take a growth-strategy approach to marketing Newfoundland and Labrador as a tourism destination. Advertising will reach and persuade visitors to come to Newfoundland and Labrador, rather than to other destinations in their evoked set. Public and Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing media relations will reinforce the key messages, delivering a consistent and relevant brand image of the province, while sales and online initiatives will "close the loop." The tourism product – in the form of attractions, experiences, and infrastructure – has a larger role to play in increasing length of stay, amount of money spent per trip, and overall tourism revenues. To be successful in attracting customers from competitors, it’s essential that we focus and concentrate our resources on the best opportunity – and create programs and campaigns that are fully integrated. 5.3.a Some 15 marketing strategies for tourism industry: Consider this. Let’s say you have just arrived in a foreign country for vacation. You’ve rented a car and along with the car come either a road map or a navigation system. Getting from point A to point B will be relatively easy for you because you have the directions, where to turn, when to stop, when to go, and if you get lost you can get back on track with relative ease. Now, what would you do without the map or the GPS? You’d be pretty lost wouldn’t you? That is why you need a marketing strategy. If point B is your destination, that is, your marketing objectives, then your strategy should outline the methods you will use in order to reach those objectives. However, a marketing strategy can cover many different functional issues so, determining the best marketing strategy for your small tourism and hospitality business could require your consideration of some alternatives. Here are fifteen marketing strategy options you can consider. Local, Regional or National Marketing Strategies Seasonality Strategies Product Strategies Target Market Strategies Competitive Strategies Branding Strategies Pricing Strategies Packaging Strategies Promotion or Event Strategies Public Relations Strategies Social Media Marketing Strategies Advertising Strategies Sales Strategies Merchandising Strategies Web and E-commerce Strategies Having a combination of these strategies is really what you are aiming for. If you can organize your companies marketing objectives under a selection of these strategies then you have a much better chance of staying focused and ensuring you arrive at your destination on track and on time. 5.4 FINANCIAL SERVICES MARKETING – TECHNIQUES AND STRATEGIES Introduction Rapid changes in the environment in which financial services firms operated forced many organizations to develop a much more proactive approach to their marketing efforts. The diversity and speed of change that has occurred in the financial services sector due to deregulation technical change have lowered the barriers between different institutional or strategic groups resulting in a redefinition of the market place. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing Banks in India were more conservative than their counterparts in the west till 1969, when major commercial banks were nationalized. Environment became competitive and banks approach towards customers and market underwent change. Banks became conscious of their corporate image and its projection was attempted through public relation efforts. ‘Customer need is a state of felt deprivation of some generic satisfaction arising out of human condition. Some needs are not created by society; they exist in the very texture of human biology and human condition'. The needs of' customers are not static; they keep changing as environmental changes take place. ? 'They buy goods and services to meet the changing needs and evaluate their purchases based on their expectation. In order for an organization to supply consumers with products or services they expect, marketers to understand the needs and motivations of existing and potential customers as they go about making buying decisions. This knowledge is crucial to the development of suitable product strategies, whereby a competitive advantage for a11 organization in its chosen markets is identified, built and maintained. Needs of Financial Services Consumer There is a set of basic needs that usually a financial consumer may have. Cash accessibility: Customers need to have frequent access to cash and look to various money transmission tools that cater to these needs such as ATMs, credit cards and cheques as well as telephone banking which enables quick and easy movement of funds. Asset Security: Consumers need physical security of assets and one of the most basic functions of banks is that of safekeeping. Consumers also need to protect one's assets from depreciation by earning a return on their money. Money transfer: This refers to the need to be able to move money around. Technological developments have made this possible and also have reduced reliance on cash. Deferred Payment: 'This relates to the need for delaying payment of goods and services at a reasonable cost. The range of credit cards, loans and mortgages cater to this need. Financial Advice: '4s financial products increase in number and complexity, consumers have a greater need for information and advice in order to make appropriate purchase decisions Financial needs or objectives form a hierarchy, which evolve over time. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing Criteria for Investment: Investing in financial services is a crucial decision so far as a customer is concerned. Customers in the personal segment are more conscious and choosy, as their hard-earned money has to be invested wisely. Safety, Quality of service, returns and Liquidity are some of these aspects. Safety: Safety of funds is of paramount importance to an investor especially in the personal segment. Quality of service: One of the most important aspects that the modem customer looks for is quality of service which is a critical factor in attracting and retaining customers especially the high net worth individuals. Returns: People who have investible surplus also look for returns commensurate with the risk they take. In financial services especially investments in banks gives returns to the customer in the form of interest. In a deregulated market banks do enjoy some freedom in quoting their interest rates depending upon the nature of deposit, period of deposit and currency of deposit. Liquidity: Customers who invest their surplus savings may require the funds at the time they require it. Most of the customers do have plans for the future when they make investments. But then contingencies may occur and they may like to withdraw the money. In such cases, liquidity assumes importance to the customer. Marketing Techniques in Banking In simple terms application of marketing techniques in banking means a co-ordinated organizational effort to reach the customer to fulfil his specific needs for getting his patronage by maximizing customer satisfaction. In other words, the customer and his needs are central to marketing and the specific needs are satisfied through utilization of people, products or services, price, promotion, processes and branch location and distribution.. In the analysis of marketing techniques, facilities and amenities inside the branch arid the processes are being looked into in detail. In recent years Indian banks have urged their branches to adopt more and more marketing techniques for achieving their business goals. The growing competition in the banking sector, both within India and outside, has made it imperative for them to adopt various marketing strategies to gain competitive edge over each other. Customer's needs have been made the focal point of attention by banks. Branch Location and Distribution The starting point for the marketing of financial services to the customer is his local branch. Because the business of a bank is largely centralized through its individual branches, it is important to select the most promising locations wherever it is possible. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing In marketing, distribution is the means through which a seller makes his product available to the buyer. The channels of distribution for bank's services should be thought of as any means used to increase the availability and for convenience of the services that help to maintain existing bank users or increase their use among existing or new customers. However, banking today is not about where the branch is but where the customer is and banks are resorting to the use of technology so that customers can access their accounts from remote locations. Technology Advancement in technology has had a profound effect on the delivery of financial services in the last decade, and the pace of change and level of impact is continually increasing. Technology was first used in branches of banks as a means of reducing the cost of many routine processes, but now it provides a cost effective and competitive solution to the delivery of products and communication with customers. Technology has enabled banks to target customers, provide customised products and services to match their individual requirements. It has also enabled banks to strengthen relationships with its customers as they now use the convenience offered by technology to stay in touch with their branch and their accounts more. Computerisation Public Sector barks have been doing Branch Automation since 1993. The historic agreement of October 1993 with the staff unions has opened up the vistas of computerization in every functional area of banking. Central .vigilance commission has also directed the banks to computerize at least 70 percent of their total business by January 1,2000, making in non-negotiable with the unions has cleared the road for bank managements to take advantages of banking technology to improve the efficiency and decision making process for customer value creation. Branch Mechanization is given top priority in State Bank of Travancore. The Bank had 320 fully computerized branches and 76 partially computerized branches as on 31'' March 2003. In order to harness technology for better advantage, user- friendly back office automation software had been developed in-house and the package had been implemented in 71 non-computerized branches. Total business captured through computers reached 80% as at the end of March 2003. 630 branches/offices of the Rank have been provi8ded with E-mail connectivity, with scope for further expansion. E-mail is extensively used by NRIs and for the Bank's inter branch inter departmental communication. Online banking (with value added facilities like online requisition of cheque books, E-mail alert etc.,) and mobile banking products are made available in computerised branches. Comprehensive Forex Trade Finance Software package is implemented in 47 "B" category forex intensive branches. Bank has a software development team that keeps on modifying the software packages to suit the specific requirements. Automated Teller Machines Banks are outdoing one another to attract retail clients with superior technology and much better service levels. One way banks are doing this is by expanding their ATM networks. ATMs are Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing one of the latest variants of the 'place' marketing factor. They increase the convenience factor as well as saving the valuable staff time. State Bank of Travancore is in the process of augmenting the fleet of ATMs which were 52 at the end of the year 2003, as an effective delivery channel, to live up to the customer's expectations. Online Distribution and reach are also critical for efficient functioning of banks. ,4 large and fast growing section of urban and semi urban population in India has woken up to the convenience of electronic channels and banks are offering facilities like Telebanking and Online banking. Telebanking Face to face encounters are giving way to telephone encounters. Personal service is being replaced by self-service, often through the medium of computers or easy to use machines. Web sites are beginning to replace or supplement voice telephone contacts a selected number of branches of State Bank of Travancore have been offering this facility to its customers as a value added service. Single Window In Single window system employees manning the counter shall handle all types of transactions as desired by the management including payment and receipt of cash. This facilitates the customer to put through the transactions at one counter instead of moving from one counter to another and thus save time and the transactions are hassle free. May I Help You Counter May I help you counter functions almost like a reception counter from where customers can get all the information and guidance that is required, whether it be regarding deposits, loans and advances or other services. The required stationary items like vouchers, pay-in-slips, brochures etc., are also made available at this counter. Teller In spite of technological development the usage of cash in our country remains quite high. Customers visiting a branch either for depositing money, withdrawing money for availing various services from the bank often has to spend more time at the cash counter. Also, they may have to move to other clerical counters as well to get the receipts for the deposits made which again takes more time depending on the processes involved. To reduce waiting time and for speedier disposal most of the banks have introduced the Teller system where Tellers facilitate single point acceptance and payment of cash as also acceptance of cheque and issue of receipts. This also substantially reduces customer complaints due to delays and increase customer satisfaction and customer retention. Processes Creating and delivering product elements to customers require the design and implementation of effective processes that describe the method and sequence of actions in which service operating systems work. Banks procedures should be designed in such a way that they should be not only employee friendly but also customer friendly. The success of bank marketing rests heavily on the simplicity and operational ease of bank systems and procedures. Customers expect speedy opening of accounts, speedy acceptance of cash for credit to their accounts, legible written pass books, updated Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing statements, collection of cheques with the least possible delay, intimation on maturity of deposits, prompt execution of standing instructions and so. Advice on Maturity of Deposits Customers require advance information regarding the maturity of their deposits. It is possible that customers may forget the date of maturity and may lose interest by late renewal of deposits. Also, timely information regarding the prevailing rate of interest and any new product will serve to improve customer service and delight the customer. Accuracy of Pass books1Statements Pass books and Statements are tangible evidence of the service that customers have purchased from Banks. These are to be neatly written or printed and should be accurate. Updated Pass books Statements Most of the customers would like to keep track of their accounts on an ongoing basis and banks should on a regular basis update the pass books or sent printouts of statements. Ancillary Services Banks provide ancillary services apart from accepting deposits and extending loans and advances. The advantage of providing and developing existing ancillary services and introducing new services by banks, in the organizational and marketing context, can be identified as follows: To improve profitability of existing bank products by 'bolting on' fee earning ancillary services that will generate additional income. To help to lock in the customer as ancillary services require a high degree of staff-customer contact. Diversifying through an established customer relationship into new areas offsetting the problem of remaining in business, where intensifying competition will erode margin and also to provide 21 mechanisms for adopting the existing infrastructure to new and profitable purpose. Landing itself t the concept of a one-shop financial super market exploiting a full range of retailing possibilities. Creating new differentiated market positions through: Developing new business opportunities and by providing a unique set of customer packages. Safe custody of articles, Safe deposit lockers and remittance facilities are the most prominent among the ancillary services offered. Safe Custody Safe custody of' articles is an ancillary service rendered by commercial banks to its customers. Safe Deposit Locker Safe deposit lockers are provided by banks as an ancillary service to its customers for the safe keep of their valuable items. Locker facility is used by banks to attract more business by making it Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing more customer friendly by extending the usage hours, providing better amenities inside the locker room etc., Offering such facility also improves the image of the branch as well as the bank. Customer Service Customer service in State bank of Travancore is accorded top priority and all efforts are made to improve the customer amenities and redress their grievances. The performance in this area is being reviewed at quarterly intervals by the Board of Directors. A fully fledged grievance mechanism to address issues relating to customer complaints is in place. The customer service committee at the branches, Zonal Office and Head Office were quite active to ensure that there was no deficiency in this regard. The Bank continued its efforts to make SBT as the most preferred destination for the customer. Customer service can be improved if they can banks get a feel of what the customer thinks about the bank. To get feedback about the satisfaction of service rendered one technique would be to have regular customer meets. It gives an opportunity to customers to offer suggestions and help bankers redesign their marketing techniques. Good customer service represents shining 'moments of truth'. A moment of truth is any point in the interaction during which a customer has an opportunity to gain an impression of the service provided by the organisation. These are the critical interactions that leave the customers feeling positive, enthusiastic, pleasantly surprised and therefore satisfied with the customer service. Customer service is not the job of frontline staff alone. It should be bank wide obsession. As marketing is concerned with mutually satisfying exchange relationships banks should evolve appropriate marketing strategies to strengthen relationships and enlarge the customer base. Bank Marketing Strategy The Bank Marketing Strategy is a plan for action that determines how a bank can achieve its goals and objectives in the light of the existing pressures exerted by competition and other noncontrollable variables on the one hand, and its limited resources on the other. It should be a strategy to enhance the bank's strength in the market place and the banks have been achieving this through a process of performance budgeting. 5.5 MARKETING PLAN FOR A LOGISTIC BUSINESS Logistics companies are responsible for transporting goods from point A to point B and are often tasked with managing the flow of a product from the time it leaves a manufacturing site, until it reaches the consumer. To accomplish this task efficiently, logistics companies use technology to dispatch and track packages throughout their journeys. Development of a marketing plan for a logistics company is fairly straightforward. Step 1 Define what services your company provides. Do you deliver raw materials to factories, or finished products to consumers? Do you transport goods by ship to overseas locations, or focus on goods that are shipped within the country by truck? Do customers use online tools to ship products themselves, or work with your staff to book passage by phone? By clearly defining your services, you can develop tactics to market your offerings. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing Step 2 Articulate your target market. Perhaps you focus on shipping goods for the electronics industry, packages for online retailers or refrigerated food items for supermarkets. Do you seek a small number of large customers or many smaller organizations? Try to define who your primary market is, as well as any secondary markets. Step 3 Identify your competition. Who offers similar services or targets similar clients? Be sure to cast a wide net when considering your competition. You may find that when it comes to a group like online retailers, your competition is not another logistics company, but rather the postal service. Other prospects may use their own shipping department or a commercial courier. Identifying your competition will help you develop tactics to position your company to compete with them. Step 4 Identify your competitive advantage. Why would customers come to you instead of your competition? Perhaps you offer lower prices, newer trucks, better service or high tech tracking tools. Outline what makes you a better logistics choice than your competitors for your target market. Step 5 Set a marketing budget. How much money will you allocate towards marketing your business? Some companies will allocate a fixed amount of money for a year, while others allocate a percentage of revenue that is calculated each quarter. Will marketing dollars be allocated to specific target markets or directed to certain offerings or will budget dollars be spent promoting the company as a whole? You need to know how much money you have to invest before you can consider specific tactics. Step 6 Using your marketing budget as a guide, determine how you will communicate your differences to your target market. Consider where you will advertise, what trade shows you will attend, or what industry groups you will join to get your message across. Also consider how your competitors are delivering their message and whether you want to try similar media or try a different approach. 5.5.a Sales & Marketing Strategy The sales & marketing functions of logistics companies in India have long been focussed towards creating short-term, price driven value for stakeholders, but have failed to impact long-term shareholder value. This is exactly where steps in and assists the senior management in understanding the customers of logistics companies. Our Sales & marketing strategies stand on the following four cornerstones: It is critical to understand not just the customer’s needs, but the customer as well. It is firmly believed that without this perspective, no sales & marketing strategy can ever add long term value. Know your operational limits. In the logistics space, sales and marketing strategies very strongly depend on the operational delivery capabilities of an organisation. To prevent out client organisations from making the fatal mistake of not being able to deliver on commitments, by making the right commitments in the first place. Analyse the cost to benefit proportion. A thorough analysis of the costs and the realistic Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing benefits avoids our client organisations from wasting time, energy and effort on unproductive initiatives. We need to appreciate the impact of failed initiatives on the internal team and support our client teams with a detailed and thorough pre-effort analysis. Analyse the Risk involved in the strategy. Apart from the financial risks, we assess the nonfinancial risks associated with a strategy. In the logistics industry in India, public memory is not short and we need to thoroughly and completely understand this fact. Our extensive operational experience and sound understanding of the fundamentals of India’s logistics Industry helps us develop strategies with known and controlled risks. Some of the areas where we have to contribute for long-term value addition through sales and marketing strategies are: Customer & Market Assessment – We need to have a very strong knowledge base of cargo flows (EXIM and Domestic) and factors that have historically affected these flows. We should share our knowledge and understanding of the business in an endeavour to provide customer and market insight. Branding & Communication – This is one of the most neglected aspects in the Indian logistics industry but is increasingly gaining favour as client organisations are attempting to lock-in long term value and service providers looking for long term customer lock-in. Channel Management – The logistics industry is highly heterogeneous in terms of effective sales channels. This diversity is further complicated by the varied effectiveness of channel across different parts of India. We need to provide a client organisation with a clear channel management strategy that considers effectiveness specific to customer segments and geographies. Portfolio Planning – While most organisations are striving to offer complete and integrated logistics solutions and we need to provide them a clear understanding of what should be the limitation on their immediate service offerings, and how should the same evolve towards complete solutions in definite time horizons. Product Mix Strategy – We need to assist organisations in developing specific industry-based products to offer to their customers. We have successfully helped various clients to structure their services business through market-centric products. Pricing Strategy – In an industry plagued with poor customer retention and margins, we support our clients by developing pricing strategies specific to service offerings and customer segments also considering operational constraints. We need to help our client organisations transform their customers from a fixed fee model to a KPI based payment structure. Pricing in the logistics industry: Pressure rising international study reveals According to Simon-Kucher’s Global Pricing Study, price pressure is higher in the logistics industry than in other sectors – no matter the country. Only a strong positioning and committed leadership can help companies in Europe, Asia, the Americas and the rest of the world to counter the pressure. Three-fourths of logistics companies are unable to get the prices they deserve for their services. The causes, managers say, are the price-aggressive competitive environment and the prevalence of standardized products. These were the findings of the Global Pricing Study 2012* with 151 respondents from the transportation and logistics sectors throughout Europe, Asia, Northern and Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing Southern America. The study, conducted by the global strategy and marketing consultancy SimonKucher & Partners, also reveals that logistics companies are often the source of their own misery. After all, successful companies, regardless of industry, have "pricing power" – the ability to charge prices that reflect the value of their products and services. Still, its importance in the logistics sector, where margins are considerably lower compared to other sectors, should not be underestimated. Logistics companies with strong pricing power achieve on average 17 percent higher margins than their competitors. "A strong market positioning and selling premium products greatly improve a company's pricing power – which also guarantees international business success," says Dr. Philipp Biermann, Partner at the global strategy consultancy Simon-Kucher & Partners. Inept price increases No matter the country, pressure is rising in the logistics industry, as customers continue to demand discounts and over-capacities in several sectors drive prices down. What's more, almost twothirds of the responding transportation and logistics firms from a wide variety of countries are in the midst of a price war, the study reveals. The cross-sector average is lower. Even though 77 percent of the international respondents tried to raise prices in 2011, 20 percent failed completely (clearly more than in other sectors). Of those that did succeed in raising prices, just two-thirds managed to take the price increase a step further and improve margins. Industry expert Biermann explains: "What we are seeing here are only price adjustments. In other words, they are simply passing on higher costs. These aren’t true price increases that will lead to higher profits." So where's the problem? Company leaders need to step up and provide fresh impetus, the study shows. With stronger management involvement and a specialized pricing organization, the findings reveal, a company has the best chance to truly raise prices and achieve sustainable profits. Simon-Kucher & Partners' Global Pricing Study 2012 confirms: In companies where pricing is a boardroom matter, the chances are much greater that price increases will not only pass on higher costs, but also ultimately boost margins. Weak price implementation The study also shows that the transportation and logistics sector underperforms when it comes to implementing price increases in the market. Over two-thirds of the respondents failed to implement more than 60 percent of their planned price increases. Compared to the cross-industry average, price implementation in the logistics sector was lower. "When so many logistics firms are failing so often to implement prices, it means that their price increases are just in theory, and not for practice," says Biermann. There are, however, companies that have managed to push through up to 100 percent of their planned price increases. One thing is clear here: Pricing power is not an industry-specific phenomenon; every company can achieve it – with the right management guidance. Yet when it comes to price implementation, the entire team must be involved. The sales team in particular must fulfil strict guidelines; otherwise, sellers will try to drive prices down to achieve higher volumes. Shipping and Logistics Marketing Eye has extensive experience in providing marketing services to companies in the shipping, supply chain and logistics sectors. From multi-party logistics and shipping through to logistics, supply chain solutions and technology companies, Marketing Eye is a leading provider of integrated marketing solutions and lead generation campaigns. Marketing Eye has worked extensively in the supply chain solutions area providing companies that have end-to-end operations like shipping, stevedoring, transport, logistics, bulk Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing handling, mining, and freight operations with a complete outsourced marketing team. We understand the requirements of this sector and are able to provide strong advice and planning to execute marketing strategies that are aligned to your overall business plan. As a marketing firm in Atlanta, we are unsurpassed in our knowledge of this sector and are able to add real value from day one. Marketing Eye services include; Development of strategic marketing plans Implementation of marketing campaigns Branding and brand promotion Public relations – industry, business and vertical market Website development, search engine optimization Government relations and industry organization lobbying Advertising and strategic sponsorships Award submissions and speech writing Brochures and stationery development Multimedia presentations and corporate videos Newsletters and e-news Event presentations Direct marketing and related generation campaigns. 5.6 EDUCATIONAL MARKETING: A New Strategy for Building Customer Loyalty Educating customers about products and services has long been a priority for leading companies. But new Internet-based approaches now enable them to develop far deeper customer relationships through ongoing education and information sharing. You can too by applying our five critical success factors to your marketing challenge. It’s no secret that the age-old maxim about educated consumers being the best customers has taken on new significance in the Internet era. Advanced communications technologies now make it possible for companies to interact directly with their clients, distributors, channel partners and other important stakeholders in ways never dreamed possible until quite recently. Leading companies are maximizing those opportunities with a variety of approaches to support their business objectives. Instead of focusing solely on product-related information, they pursue communication and learning strategies that emphasize flexibility, interactivity and understanding with a fundamental focus on enabling customer success. Educational content is often packaged for consumption via the Internet or mobile devices to win the favor of busy clients who are deluged with information. For example, outdoor adventure retailer REI provides expert advice with articles, videos, and gear checklists, which meet customer needs while encouraging product purchases. In the financial services field, State Street Global Advisors’ highly usable learning portal, created with the assistance of Intrepid Learning Solutions, provides educational resources to investment professionals. And in the IT profession, accounting software maker Intuit, Inc. offers extensive learning and networking opportunities to serve its vibrant communities of small businesses and consumers, seamlessly integrating product suggestions with education. The impact of such educational marketing programs translates directly to the bottom line. Research shows that customers who engage with a company’s educational marketing offerings are 29 times more likely to purchase a company’s product than those who are informed through media ads Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing alone, and 5 times more likely to make a purchase than those reached by direct marketing. They are also 94 percent more satisfied with their purchase and 93 percent more likely to tell friends about their experience. A properly developed and executed educational marketing initiative is the antithesis of a hardsell marketing campaign. It is a highly professional educational program dedicated to keeping valued clients informed about important issues and trends related to their interests. Its singular purpose is to help customers achieve success with their objectives and pursuits—not to push products and services. Effective educational marketing applies best practices of adult learning theory to ensure that customer engagement and success. 5.6.a Key Considerations for Educational Marketing: Five Pillars for Success Make it easy Make it relevant Make it fresh Manage it Measure it 5.6.b Five Market Trends Suggest Rethinking Educational Sales Strategies Now You are already being affected by several developments in the K-12 school market that negatively impact traditional school sales and marketing methods. These trends will continue to impose limitations on your efficiency in reaching your current customers and finding new ones. The changes we’ve witnessed for the last few years are only the beginning. Again, I encourage you to listen to one of our top education leaders, Jim Warford, say the same thing. The train has left the station, as the old saying goes: You can either enjoy the ride or be thrashed around by it. Here are five trends that have, and will continue to, put pressure on your education marketing and sales plans: 1. The ubiquity of the web. Universal access to faster, higher bandwidth networks means educators you want to do business with can get the information they want and interact with the people they choose to when it is convenient for them, and in a variety of satisfying formats. They still love face-to-face interaction and prefer to press the flesh but, increasingly, budgets and schedules make it less practical to do so. 2. Information overload. Voice mail and email combined with wireless access and ubiquitous mobile communications devices create an information overload that makes it challenging for decision-makers to manage their time and stay focused. Effectively, they have tuned you out. 3. Declining results from traditional methods. Response to traditional discrete push-type communications channels is dropping. Attendance at educational conferences is stagnant due to travel restrictions, especially at many national conferences. Conversion rates from direct mail, email, and other forms of outbound communication are declining, making it more difficult for suppliers to reach the audience of school administrators who make buying decisions. 4. Product oversaturation and hype. Product feature sets are no longer the primary source for meaningful competitive advantage for education marketing. In many core solutions areas -reading and math, for example -- the number of products to choose from is staggering. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing Administrators don't have time to sort it all out. Instead, they look for added value and more substantive, continuous relationships with their suppliers. 5. The distribution juggernaut. The supply of education-market-savvy sales reps with school market expertise is insufficient to meet demands. Cost of sales continues to be under pressure and depress financial results for most education market companies. Demographics of the population of experienced K-12 sales professionals suggest that this situation will worsen during the next five years. The education market simply is not exciting enough or profitable enough to attract enough talented people. 5.7 STRATEGIES FOR ENTERTAINMENT INDUSTRY 5.7.a Movie Marketing Strategies The theatrical trailer is often the first chance to promote a movie to its target audience. Starting up to a year before the release of a major studio movie, distributors run movie trailers that are meticulously edited and audience-tested. The idea is to give moviegoers a taste of the laughs, special effects and plot twists of the studio's upcoming releases, while leaving them wanting more. It's an art form that's usually handled by special trailer production houses. About the same time that the first trailers hit the theatres, the movie studio will unveil an official Web site for the film. Typical movie Web sites allow visitors to view multiple versions of the trailer, watch behind-the-scenes interviews and mini-documentaries, read plot synopses, download cell-phone ringtones and desktop wallpaper, play games, and chat in forums and even pre-order tickets. The official movie Web site is only the beginning of a much larger Internet marketing campaign. As the release date of the film draws closer, movie marketers try to get early favourable press coverage in newspapers, magazines and on entertainment TV shows. The main movie publicity tactic is something called a press junket. At a press junket, journalists, entertainment reporters and movie critics are flown out to a special location for a day or weekend of interviews with the stars and creators of the film. The actors, directors and screenwriters sit in separate rooms and the reporters are brought in one by one to ask their questions. Press junkets are highly controlled environments where interviews are often attended by a publicist, who make sure interviews never veer from positive topics [source: Rosenbaum]. If you've ever seen a TV interview with an actor sitting in front of a poster of their movie, that's from a press junket. Weeks before the movie opens nationwide, the promotions department starts an allout publicity blitz. The idea is to bombard the public with so many images and promos for the movie that it becomes a "can't miss" event. Movie marketers will plaster the sides of buses with huge ads, place billboards all around the city, run tons of teaser trailers on TV, place full-page ads in major newspapers and magazines, and the movie's stars will show up on all of the major talk shows. The Internet is proving to be a prime spot for these publicity blitzes. Promoters can place rich, interactive ads on the Web sites most trafficked by their target audience. They can also release behind-the-scenes clips, bloopers and other viral videos on video-sharing sites like YouTube. Or they can release different media clips and let the fans create their own trailers. Another popular strategy is to use highly visible product tie-ins and corporate partnerships. In the weeks leading up to the release of "How the Grinch Stole Christmas," images of the green Grinch appeared on packages of Oreos, boxes of Froot Loops and cans of Sprite. Even the United States Postal Service got into the act, stamping letters with special "Happy Who-lidays!" messages. For Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing marketing children's movies, the Holy Grail is getting promotional goodies in McDonald's Happy Meals. One final movie marketing strategy is the publicity stunt, an orchestrated media event where someone does something incredibly silly, dangerous or spectacular to draw further attention to the opening of the movie. An example is when the promoters of "The Simpsons Movie" transformed dozens of nationwide 7-Eleven convenience stores into replica's of Springfield's own Kwik-E Mart Unfortunately, movie promotion is not an exact science. Read about some common problems with movie marketing in the next section. Problems Associated with Movie Marketing The trickiest part of movie marketing is that every movie is different. Every film is its own standalone product with its own potential market segment. Just because your last kid's movie was a huge hit doesn't mean that audiences will come in droves to the next one. There's no formula for success, so marketers must be creative to grab the public's attention. Moviemaking is an inherently risky business. Movie marketers try to alleviate some of that risk by heavily promoting expensive films. Unfortunately, in the process, they make the films even more expensive by adding on a huge marketing budget. There's always a chance that the marketing campaign will stink just as bad as the movie, and suddenly the studio has thrown away twice the amount of money. For example, Oliver Stone's epic "Alexander" cost $155 million to make and $60 million to market domestically and only took in $167 million worldwide. The problem is that most big-budget movies are marketed to the widest audience possible. Ads are placed on every TV network and stuck in every newspaper and magazine. There's no focus. Chances are that with every blockbuster movie marketing campaign, millions of dollars are lost on people who would never see the movie, no matter how good it is. One solution is the idea of the nichebuster, a smaller movie marketed heavily to a highly specific audience segment, says skateboarding fans or religious groups. One of the proponents of this idea is 20th Century Fox, which recently launched a division called FoxFaith that will produce and market movies to a Christian, family-oriented audience. This is called demographic marketing rather than selling movies according to traditional genres like action, romantic comedy, thriller, et cetera. A final problem is that moviegoers are more media savvy than ever. While children are highly susceptible to advertising, many adults recognize the publicity blitz for what it is: publicity. Some moviegoers are starting to complain about the sheer magnitude of hype that surrounds major studio releases. This is another reason why the Internet is proving to be a powerful marketing tool. If studios play their cards right, they can capitalize on social networks, viral video sites and other online communities to sell their movies for them. The Net Generation moviegoer is much more likely to trust his chat buddy's opinion than some talking head on E! Entertainment Television. 5.7.b Strategic Marketing in Creative Industries Career Focus The term "creative industries" refers to industries that supply goods that are commonly associated with artistic, cultural, or entertainment value, such as film, television, music, publishing, video games, the performing arts, sports, fashion, advertising, and other areas within the media and entertainment sector. Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 Services Marketing The course is primarily designed for students pursuing a career in the creative industries, or who plan to work in companies that advise or support those sectors. It may also be interesting for students seeking to advance their knowledge of strategic marketing in the context of a challenging, rapidly changing environment. Educational Objectives The course starts with an examination of the defining properties of creative industries, and the consequences for "winning" marketing strategies. Subsequent modules explore: How can firm’s best allocate resources across a portfolio of projects and for one project over time? For example, does it pay to pursue a "blockbuster" strategy? How can firm’s best approach the management and marketing of creative talent? In particular, how should companies invest in and capture value from superstars and the teams to which they belong? How are digital technologies changing the creative industries? For instance, how are firms affected by - and how can they benefit from - the increased pressure on prices and the larger assortments offered online? The course ends with an examination of firms that fall outside the core creative industries but that seemingly face similar challenges or opportunities. Healthcare Marketing Strategy Healthcare strategic planning calls for a deep, holistic look at your organization’s ambitions. It lays the foundation for achieving growth goals and building a strong portfolio strategy to change and grow. Experts believes that effective strategy development carefully examines all strategic options and places priority on each for information-based decision making. A good strategic planning process maximizes the value of your existing market information and marketing research. This allows us to make sound decisions to bridge the gap between where we are at and where we are going. We need to work closely with our team to challenge existing assumptions, define objectives and build an actionable plan. We must plan to decide where to focus, where to compete and how to allocate resources. At the end of the process we will have a customized framework and tools to repeat marketing strategy development for subsequent initiatives. When working with good plans, we can expect: An information-based strategic marketing process that everyone in our organization can support Interactive sessions that capture system knowledge and build consensus A mechanism to establish clear goals to monitor success Increased revenues through streamlined resources Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Unit 5 STRATEGIES IN SERVICE MARKETING: Prepared by: M.Dineshkumar, Assistant Professor, KVIMIS, Coimbatore. Services Marketing